Business liability coverage types compared
The main liability coverages Canadian businesses buy, compared on what they respond to, who needs them and the traps in each.
This table compares types of liability coverage, not insurers or prices, because premiums depend on your industry, revenue, province, claims history and the insurer's own model. Use it to decide which coverages to ask for, then compare actual quotes like for like with the liability quote comparison tool. Select a column header to sort, or filter by keyword.
Select a column header to sort.
| Coverage | What it responds to | Who usually needs it | Watch out for |
|---|---|---|---|
| Commercial general liability (CGL) | Bodily injury and property damage to others caused by your premises, operations or products, plus personal and advertising injury | Almost any business that meets customers, visits sites, rents space or sells products | Excludes professional advice, pollution, owned vehicles, employee injury covered by workers' compensation and most data breaches |
| Products-completed operations | Injury or damage that happens after your product is sold or your work is finished | Manufacturers, distributors, retailers, contractors and installers | Has its own aggregate limit; some low-cost CGL quotes limit or exclude it |
| Tenants' legal liability | Damage you cause to premises you rent, typically from listed causes such as fire | Any business renting an office, store, unit or warehouse | Often a low sub-limit; check it against the replacement value your lease makes you responsible for |
| Professional liability (E&O) | Financial loss to a client from your advice, design, error or omission | Consultants, IT firms, designers, accountants, brokers, regulated professionals | Usually claims-made: the retroactive date and timely reporting decide whether a claim is covered |
| Umbrella or excess liability | Damages above the limits of your CGL, employer's or auto liability policies | Businesses with large contracts, public traffic or vehicles on the road | Follows the underlying policy's terms; gaps in the base policy usually remain gaps |
| Cyber and privacy liability | Costs of a privacy breach, notification, data restoration and third-party claims | Any business holding customer, patient or payment data | Not covered by a standard CGL; sub-limits for ransomware and social engineering vary widely |
| Directors' and officers' (D&O) | Claims alleging wrongful acts by directors and officers in managing the company | Corporations with outside investors, boards, lenders or non-profit directors | Claims-made; insolvency, prior acts and major shareholder claims may be excluded |
| Non-owned automobile liability | Liability when employees use their own or rented vehicles for your business | Businesses whose staff run errands, visit clients or rent cars | Does not cover vehicles your business owns or leases long term; those need a commercial auto policy |
| Commercial package policy | CGL bundled with property, business interruption and crime in one policy | Small shops, offices and service businesses wanting one renewal date | Convenient but can hide low sub-limits; check each section's limit separately |
| Wrap-up liability | Liability for all parties on one construction project for its duration | Owners and general contractors on larger projects | Applies only to the named project; your own CGL still needs to cover other work |
Coverage names and wordings differ between insurers, and endorsements can add or remove cover. Insurance is regulated provincially: confirm licensing and complaint routes with your provincial regulator, such as FSRA in Ontario, the Autorité des marchés financiers in Quebec or BCFSA in British Columbia. General consumer explanations are available from the Insurance Bureau of Canada. Workers' compensation is separate and run by provincial boards.